Business reorganization through transfer of shares in 相鉄興産

「相鉄興産㈱ was established in 1935 by its predecessor to strengthen and expand the gravel sales business operated by 相模鉄道㈱, now 相鉄ホールディングス㈱, since its founding. It operated across the Kanto region, primarily in Kanagawa and Tokyo, selling aggregates and ready-mixed concrete, as well as a broad range of products including petroleum products, steel products and interior products such as unit bathrooms. Sotetsu Group previously pursued large-scale residential development on an ongoing basis, primarily along Sotetsu railway lines, and 相鉄興産㈱'s business was expected to generate synergies in securing high-quality construction materials and improving profitability. However, as this development has now largely ended and those synergies had diminished, the Company transferred its shares in 相鉄興産㈱ to 東和アークス㈱ from the perspective of optimally allocating the Group's management resources.」